Information, Communications and Technology
Select one of the case studies below:
Commercial Due Diligence – Technology
United States
A UK based private equity team had made a strategic decision to acquire a high technology company in North America, and narrowed its search down to a specific target.
AshtonPenney Interim was asked to provide a CEO-level interim manager, with deep sector knowledge of the target company’s primary product line, to join them for an intensive period of early due diligence. This particular private equity firm had previously utilized several interim managers provided by AshtonPenney and was now expanding the relationship into due diligence activities.
AshtonPenney’s network included an acknowledged expert in the field who had run two companies in the same space as the target. Initially working with the team to critique the vendor’s documentation, the interim manager then attended initial meetings with the target’s management team. He subsequently made a significant contribution to the report produced for the investment appraisal team.
By accessing the interim manager’s expertise, the investment team was provided with an objective and informed expert able to inject some commercial realism into the proposition. In addition they gained invaluable knowledge of the sector prospects and the target company’s market positioning.
Based in part on the due diligence provided by the interim manager, the private equity firm pursued the acquisition. To date the new portfolio company is operating ahead of expectations and is being slotted for an exit about 12 months hence.
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Technology - Germany
Interim Director of Finance & Accounting
A US technology group had purchased a leading international consulting firm based in Germany.
An interim CFO with strong systems integration skills was hired to support the newly appointed CFO. He was tasked to remove the ERP software, convert the IAS/IFRS accounting system to US GAAP, and to secure a “Fast Close.” At the same time, cost structures had to be adapted, process cycles needed to be aligned and a speedy integration into the new parent company needed to take place.
The interim executive supplied by Alpha Management took over the operational and project leadership role and provided key support to the management team in the first months post acquisition.
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Specialist software company - London
Grooming for exit - €66m Enterprise value
The ‘focused’ personality of a dominant CEO had prevented the generation of value in the years since the private equity firm had invested in what was now a loss making software business. The anticipated path to profitability and exit had been effectively blocked. The company’s standing with its customers was seen to be at risk. It had gone through four permanent CFO’s in twelve months. The chairman had become marginalised but persuaded the CEO to hire an interim executive for the first time.
We introduced an interim Finance Director with many years’ experience in the sector to take a grip on the financial controls of the business, and, by dint of personality and discretion managed to turn round the CEO to accept a new and less ambitious exit plan.
The original brief had stated that the plan should take 6-9 months to complete. Within two weeks of starting it became clear that the CEO’s forecast was over ambitious. The investor accepted that it would be a longer haul. Over a period of two years the business was returned to profitability, its reputation in the market was restored and the company was eventually sold to a secondary private equity investor.
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